Monday, December 8, 2008

Redneck Recession Rut Roh

From today's Ad Age...

Once-unstoppable, Nascar is watching its fan base erode, TV ratings slip and marketers slam the brakes on sponsorships. CEO Brian France says Nascar's sponsorship revenue in 2009 will be flat. In comparison, sponsors spent $150 million more last year than the year before. France and others are fretting over whether the organization could actually lose money next year.

Of Nascar's 42 full-time drivers, 12 currently do not have primary sponsors for the 2009 season. That's a big problem, since at least 75% of Nascar's budget comes from sponsors. Top sponsors pay $18 million to $20 million to be featured on a driver's car for all 38 races.

As for advertising, advertisers spent about $539 million on TV ads surrounding Nascar programming this year, down from about $567 million in 2007. This year also marks the third consecutive season that the sport has suffered from declining TV ratings.
Going to have to move more Thomas Kinkade paintings, y'all...

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